Apple’s method involves a good deal of what they call “EDR”, wherein the display gamma is ramped down in concert with ramping the brightness up, so that the brighter areas get brighter while the non-bright areas remain dark due to gamma math; that term is helpful for searching their WWDC developer videos for more details.
It still looks like how they say where its way too bright and makes formerly “bright” whites appear even neutral grey surrounding the hdr content. Personally I find it extremely jarring when it is just a frame that is hdr within the overall screen. It is much nicer when the hdr content is full screen. Imo I wish I could just disable partial screen hdr and keep the full screen implementation because it is that distracting.